KRA Requests For Kenyan Airbnb Hosts Data In Ongoing Taxation Drive
The Kenya Revenue Authority (KRA) has requested Airbnb to provide historical transaction data of Kenyan hosts on its platform. This request, spanning from January 1, 2021, to December 31, 2022, aims to identify hosts and their earnings.
The request from KRA is in line with a recent trend where the tax authority has been stepping up efforts to collect taxes from digital platforms. Airbnb hosts in Kenya are subject to either Digital Tax, Value Added Tax (VAT) and income taxes.
KRA’s request was done through the Irish Tax Authority (Irish Revenue) who initiated an exchange of information request to obtain specific information about Kenyan hosts. Airbnb, under legal obligations, has been formally asked by Irish Revenue to share this information with KRA.
Airbnb will most likely honor the request from Kenya to avoid further trouble with tax authorities. Earlier in the week, an Italian judge ruled for the confiscation of US$835.5 million from Airbnb. The ruling is in response to alleged tax evasion accusations. According to prosecutors, Airbnb neglected to collect a substantial tax on approximately €3.7 billion in rental income, a violation of the 21% earnings tax obligation for landlords in Italy.
Kenyan Airbnb users whose data is included in this exchange of information will receive notifications from Irish Revenue. The notification will simply confirm that their data will be shared with KRA. This move is expected to help KRA better understand the tax obligations of Airbnb hosts. It will ensure that tax revenues are appropriately collected from the platform.
Guide to Taxes in Kenya.
